UNION OF INDIA & ANR. vs K. G. KHOSLA & CO. (P) LTD. & OTHERS

The Supreme Court upheld the High Court's decision that sales made by the respondent company were inter-state sales under Section 3(a) of the Central Sales Tax Act, 1956, and thus assessable to sales tax by the authorities in Haryana. The Court clarified that the determination of whether a sale is inter-state or intra-state does not depend on the location where the property in goods passes. The Court ordered the transfer of sales tax amounts wrongly paid in Delhi to the Sales Tax Authorities at Faridabad.